Rate Schedule for Metro Main and Metro Hub

The rates are as follows for a residential customer with a 5/8" meter:

Water Availability Rate (base rate)

$29.50 per month

1st Tier (3,001 - 10,000 gallons)

$2.75 per 1,000 gallons

2nd Tier (10,001 - 17,000 gallons)

$4.60 per 1,000 gallons

3rd Tier (17,001 - 24,000 gallons)

$6.10 per 1,000 gallons

4th Tier (24,001 gallons and above)

$7.10 per 1,000 gallons

Metro Main and Metro Hub have the
same rate structure. The average monthly usage for residential customers based
on a 12-month period is 8,000 gallons. The cost for 8,000 gallons is $46.45.The American Water Works Association
(AWWA) factor of meter sizes is used for larger meters. In other words, if a
customer has a 2" meter, when the second or third tier starts will be
different because of the increased volume of flow through the meter.The Board of Directors approved the
current rate structure in May 2016, no rate adjustment was recommended by staff
and the FOC for 2017. The objective was to cover fixed costs with fixed revenue
and variable costs with consumption revenue by restructuring the rate schedule
with minimal impact to the average customer. Fixed costs can be defined as
expenditures that are incurred regardless of the amount of water used. Variable
costs are expenditures more closely tied to the amount of water pumped and
delivered.With the decline in water usage
appearing to continue into the future, the Board of Directors has supported the
concept of having the Water Availability Rate (base rate) capture a larger
portion of the District's fixed costs. By doing so, this helped to stabilize the
revenue and eradicated the need to chase after a declining variable revenue
source, providing increased financial and rate stability.Prior to the 2015 rate adjustment,
the Water Availability Rate covered 69% of the District's fixed costs. The 2015
rate structure raised the District's revenue stability to 83%. The 2016 rate adjustment
included the first 3,000 gallons within the Water Availability Rate and brought
the District up to 90% revenue stability.

Rate Schedule for Metro Southwest

Metro Southwest has three service
areas, which were acquired at the end of 2009. Each of those service areas -
Diablo Village, E&T, and Lazy B has its own rate schedule. The rate
structures in Diablo Village and E&T were revised to achieve the same
revenue stability, and the rates in Lazy B have not changed with revenue
generated supporting their operating costs to sustain itself and not negatively
impact other District ratepayers.

Fees/Deposits

The District has service charges and fees. The basic ones include customer deposits, connection fees, re-reads, reconnections, etc. The District also has a fee for illegal or unauthorized use of water. This involves a contractor taking water from a hydrant without permission and is associated with a $100 credit given to a customer who reports that such an event has happened. The District also has a bulk water rate for contractors and others that need to use water for construction and other purposes.

Customer deposits vary. Deposit amounts may be increased for each category at the discretion of staff based on poor payment history of owner or previous tenant.

Bulk Water Charges - Metro Main & Metro Hub

Water Resources Utilization Fee for All Service Areas - $0.50 per 1,000 gallons

In October 2012, the Board established a Water Resource Utilization Fee at 10 cents per 1,000 gallons, which became effective March 1, 2013 and applies to all Metro service areas. In October 2013, the Board raised this fee to 20 cents per 1,000 gallons. In September 2014, the Board raised the fee to 40 cents per 1,000 gallons. In May 2016, the Board raised the fee to 50 cents per 1,000 gallons. This fee provides funds to develop, design, and construct projects that will put to use the District's CAP water and effluent. Specifically, the Water Resources Utilization Fee helps fund the land acquisition and design activities for the CAP Recharge, Recovery and Delivery System, the CMID Recycled Water Project, and the 2016 wheeling agreement to deliver CAP water to Metro Southwest. By using this Fee, the District avoids adding additional debt and reduces the financial impact of these initiatives.